LOS ANGELES—Los Angeles consumers may not be traveling very far to shop. JLL recently tracked the retail spending in Los Angeles submarkets, and found that Venice—surprisingly—topped the list for retail spending, beating out Beverly Hills and Santa Monica, while Downtown and Koreatown fell to the bottom of the list. The chart, however, also revealed that areas with greater accessibility to other submarkets had higher retail spending than those that didn't.
If you are along the 405 Freeway, you would rather stay along the 405 corridor, or you would rather go east. As you get closer to the coast, the traffic and congestion is tight. The shopping is also different at the coast than Century City, where you have a big mall or where there is a master cluster of promotional fashion. You aren't going to Venice for those,” Scott Burns, EVP at JLL, tells GlobeSt.com. “Venice is a market that people go to spend time, but if you are a larger format retail store, where you have to drive the business that comes, this is not one of those cities where people come just to go shopping.”
While people may not be traveling to the beach cities to shop, the area is accessible to several other submarkets, like the South Bay, increasing the flow of traffic. Downtown, on the other hand, is built to be a live-work-play environment that is sustained by local residents. “As Broadway continues to revitalize, you will start to see more retailers that will draw from a greater distance,” says Burns. “I don't know that it will compete with markets like Venice, Santa Monica and Beverly Hills. Those markets have a lot of communities that are between those cities. Downtown L.A. is almost a market onto itself. You need to create density in that market, and it will improve; but I have my doubts that it will be what we are seeing along the coast. Downtown is a great live, work, play environment, but accessibility may be one of the things that is holding it back.”
Downtown, however, does have room for growth and development, whereas Venice and Santa Monica are fully built out. Much of the available space in the coastal areas is going to residential developers. “The demand for residential product is also very high, and retail developers are competing with residential developers,” says Burns. “Often residential developers are winning because they can go vertical with their product and retailers can't.”
LOS ANGELES—Los Angeles consumers may not be traveling very far to shop. JLL recently tracked the retail spending in Los Angeles submarkets, and found that Venice—surprisingly—topped the list for retail spending, beating out Beverly Hills and Santa Monica, while Downtown and Koreatown fell to the bottom of the list. The chart, however, also revealed that areas with greater accessibility to other submarkets had higher retail spending than those that didn't.
If you are along the 405 Freeway, you would rather stay along the 405 corridor, or you would rather go east. As you get closer to the coast, the traffic and congestion is tight. The shopping is also different at the coast than Century City, where you have a big mall or where there is a master cluster of promotional fashion. You aren't going to Venice for those,” Scott Burns, EVP at JLL, tells GlobeSt.com. “Venice is a market that people go to spend time, but if you are a larger format retail store, where you have to drive the business that comes, this is not one of those cities where people come just to go shopping.”
While people may not be traveling to the beach cities to shop, the area is accessible to several other submarkets, like the South Bay, increasing the flow of traffic. Downtown, on the other hand, is built to be a live-work-play environment that is sustained by local residents. “As Broadway continues to revitalize, you will start to see more retailers that will draw from a greater distance,” says Burns. “I don't know that it will compete with markets like Venice, Santa Monica and Beverly Hills. Those markets have a lot of communities that are between those cities. Downtown L.A. is almost a market onto itself. You need to create density in that market, and it will improve; but I have my doubts that it will be what we are seeing along the coast. Downtown is a great live, work, play environment, but accessibility may be one of the things that is holding it back.”
Downtown, however, does have room for growth and development, whereas Venice and Santa Monica are fully built out. Much of the available space in the coastal areas is going to residential developers. “The demand for residential product is also very high, and retail developers are competing with residential developers,” says Burns. “Often residential developers are winning because they can go vertical with their product and retailers can't.”
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